Financials

Report by AlphaMena

ADCB is AlphaMena’s top pick in UAE banks, supported by superior asset quality, best-in-class efficiency and a more domestic balance sheet, which provides a natural hedge against the FX and rate volatility affecting more internationally exposed peers such as Emirates NBD and QNB (Turkey). Compared with First Abu Dhabi Bank, ADCB has less reliance on market-related revenues, supporting better earnings visibility, while its exposure to stressed sectors is significantly lower than Dubai Islamic Bank, particularly in aviation. 2Q26 results are the key near-term catalyst, with potential upside from a strong quarter and a NIM guidance upgrade in a higher-for-longer rate environment. AlphaMena sees attractive risk/reward, with geopolitical risk largely priced in and de-escalation a potential re-rating trigger.

Financials

Report by AlphaMena

QNB delivered a strong FY23 with an 8% increase in net profit despite a QAR 3.5bn loss on hyperinflation in Turkey. AlphaMena remains bullish because of QNB's strong government support (35% of loans), resulting in high asset quality and sound profitably. By maintaining a dominant market share in Qatar and a growing international contribution, its diversifying business mix can sustain its top-line positive momentum amid a rather unfavourable interest rate environment. The sharp plunge in the share price since 2022 offers a great opportunity to buy shares in one of the world's strongest banks. TP QAR 21.0 (30% upside).